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To: Zeev Hed who wrote (4193)	10/27/1998 8:56:00 PM
From: Stitch	Read Replies (1) \| Respond to of 5058

Zeev <<Are they dead or will they revive like a phoenix as they did few years back (when the situation was just as dire).>> I would submit that there situation now is even more dire then before. What they fumbled before was a significantly growing demand for TFI when they finally caught up. What we have today is substantial over capacity. Even when and if they do catch up I think the market won't care. <<If they die, what will be the imapct on RDRT?>> Inasmuch as APM is not currently shipping into any program that RDRT is competing for it should matter not. What the market thinks is another story. I can only think of one scenario that would even save part of the assets of APM and that one is a bit far fetched and involves a Taiwanese business interest. In other words I really do not see any hope at all for them. Best, Stitch

To: Zeev Hed who wrote (4193)	10/28/1998 1:01:00 AM
From: Stitch	Read Replies (5) \| Respond to of 5058

Zeev, In all fairness , further to my comments on APM, I note they have this to say in their filing: The company has made initial deliveries of GMR evaluation units to customers that are targeted for products at the 6.4 gigabyte per 3.5-inch disk capacity point. Cash and equivalents at Oct. 3, 1998, were $71.7 million, a decrease of $33.2 million from the $104.9 million at July 4, 1998. The company entered into $1.9 million of operating leases for manufacturing equipment during the quarter ended Oct. 3, 1998. Additional credit available under the company's existing credit facilities was $4.8 million. Assuming qualification of the 4.3 gigabyte per disk MR product, the company believes it will have sufficient cash flows from existing cash reserves and available credit facilities to support the company's transition to MR and GMR production. I do not know the status of their GMR program but I think they are basically out of it for the 4.3 GB, MR stuff. So it all hinges, IMO, on their being able to jump on with GMR. Time for a hat trick or a pall bearer. Your guess is as good as mine. Best, Stitch